The Canadian company is on a mission to migrate all of its cannabis and hemp-related business to Europe
Inc () (OTCMKTS:CANVF) is on its way to becoming a player in Europe’s hemp market after signing a binding letter of intent which awards the Canadian cannabis group the right to purchase 20% of a yet-to-be-formed German company called German HempCo, which will control a hemp cultivation plant on the outskirts of Dresden, Germany.
The striking of this new agreement will offer the Vancouver company the chance to break into the burgeoning market for hemp and cannabidiol (CBD) across Europe and transform itself into one of the biggest cultivators of hemp on the continent.
READ: EuroLife Brands set to focus on European market as it completes shift away from North America
“Gaining an interest in this world class hemp cultivation project is a marquee moment for EuroLife as we have the opportunity to acquire ownership in a highly tactical asset located in Germany,” said Shawn Moniz, EuroLife’s CEO. “We are very fortunate to become partners in this advanced stage hemp cultivation project located in one of the most important cannabis markets of the European Union.”
According to the terms of the letter of intent, German HempCo will control one of Europe’s biggest outdoor hemp cultivation projects.
More than 1,235 acres of agricultural land will be up for hemp cultivation at the farm near Dresden.
The Dresden hemp project also boasts harvesting machinery capable of harvesting crops at a rate of 123 acres per day as well as cleaning machinery to extract and separate seeds from stems; and drying rooms and warehouses for storage, cleaning and drying.
Looking further along, CEO Moniz is keen to unlock value from its pending stake in German HempCo. And the EuroLife team is already assessing new hemp-derived products such as smokable hemp flower that could be generated from harvests. One advantage that EuroLife is looking to capitalize on is the 110,000 kilograms of hemp biomass, which is already available in Dresden.
“We are eager to work alongside the other notable stakeholders of the project in order to establish EuroLife’s leadership position in the European hemp cultivation business while capturing additional value-add downstream opportunities for the company,” added Moniz.
EuroLife has recently been on a mission to migrate all of its cannabis and hemp-related business to Europe and away from North America.
In recent weeks, the group has struck relationships with three important partners to bring new products to the European marketplace, namely, with The Yield Growth Corp, Champignon Brands Inc, and AgraFlora Organics International Ltd, the firm noted.
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